First created :
10 May 2003 1220 hrs (SST) 0420 hrs (GMT)
Last modified :
10 May 2003 1220 hrs (SST) 0420 hrs (GMT)
SARS virus sparks worries about China's balance of payments: report
The SARS epidemic battering China has triggered worries among government economists about the state of international balance of payments this year by one of the world's most booming economies, state media said on Saturday.
Both the current account, which covers trade, and the capital account, covering direct investment and securities investments, could suffer from the consequences of the pneumonia-like respiratory virus, the China Daily said.
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"This year, the total of the current account surplus is set to shrink, or even reverse to a deficit," said Wang Yuanhong, a senior researcher with the State Information Center, a government think tank.
However he added that it is difficult to make predictions about the entire international balance of payments at this stage.
China's international balance of payments was "in good shape" last year, but this year could be different, experts suggest.
China's trade surplus, which reached US$30.4 billion in 2002, could potentially revert into deficit this year because of the impact of SARS on exports.
channelnewsasia.com
Maybe China need to sell some US treasury bond it holds.<g> |
